Saehan Bancorp in Los Angeles said Thursday that it lost $1.6 million in the second quarter and that it slashed its work force by nearly 10% in July to save costs.

In the second quarter of 2007, Saehan's net income was $2.1 million.

The $889 million-asset company attributed the loss to a sixteenfold in its loan-loss provision from a year earlier, to $4.9 million. Nonperforming loans rose eightfold from a year earlier, to $26.7 million, or 3% of total assets.

Its margin contracted to 3.47%, from 4.69% a year earlier, because of the Federal Reserve Board's interest rate cuts and an increase in nonaccrual loans.

Saehan said the job cuts should save it about $1.3 million a year.

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